Authentic Brands Group (ABG) signed a strategic, long-term license for its Nautica women’s apparel with G-III Apparel Group, a global expert in design, sourcing, manufacturing, distribution and marketing. Under the partnership, G-III will design, manufacture and distribute Nautica women’s sportswear, jeans, tailored apparel and dresses for the U.S. and Canada. The new license will begin in January 2024 with a phased approach to new category launches, starting with denim apparel. The product will be sold in better department stores, digital channels and Nautica stores, websites in North America and franchised stores worldwide.
In the past, G-III has significantly grown fashion brands like DKNY, Donna Karan, Karl Lagerfeld, Calvin Klein and Tommy Hilfiger. Nevertheless, G-III ended the 2022/23 fiscal year in the red despite strong sales growth. As a reason, the company cited high-value adjustments that had to be made in the final quarter. The group, which took over the Karl Lagerfeld brand in its entirety last summer, posted sales of $3.23 billion (€3.04 billion) in the fiscal year that ended in January, exceeding the previous year’s level by 16.6 percent. However, higher costs and write-downs amounting to almost $350 million meant that G-III slipped into the red. The operating loss amounted to $109.5 million after an operating profit of $311.1 million in 2021/22. In addition to the new licensing partnership with ABG for the Nautica brand, which will begin in January 2024, management said a “repositioning and expansion” of the Donna Karan label should help it achieve sales in line with the previous year and net income of between $117.0 million and $122.0 million for the current 2023/24 fiscal year.
Nautica is a globally known American brand with over 70 categories, including apparel, accessories and a home collection for men, women and children. Nautica is available in nearly 1,300 freestanding stores and shop-in-shops in more than 30 countries worldwide and on nautica.com.
